Country to create national stock index
Azerbaijani government continues to take measures for the development of the economy of the country and the private income of its citizens. The government plans to set a national stock index as one of these measures.
Azerbaijani government continues to take measures for the development of the economy of the country and the private income of its citizens. The government plans to set a national stock index as one of these measures.
To create a national stock index in Azerbaijan, first of all, companies of the leading spheres of the real economy must pass the listing procedure on the stock exchange, told the Chairman of Baku Stock Exchange (BSE) Management Board Vugar Namazov to local media.
“Today we are working on this, we have created a legal and technical basis. With the listing of companies and the formation of market prices, an index basket will be created, which is necessary for the formation of stock indices,” said Namazov. “The basket includes the company's shares, which are indicators of the economy. Thus, the change in the index and fluctuations in the shares included in the basket, indicate to a certain trend in the economy.”
Namazov added that one of the issues reflected in the strategic roadmap is the procedure for listing at the exchange of at least five companies of significant sectors of the economy.
“If we can organize the trade in the shares of these companies, we can calculate their index at their cost,” he said.
The chairman noted that the calculation of the index is simple: “Tools are included in the basket, which determine the trajectory of the index on the basis of daily fluctuations in prices that is an indicator of the stock market.”
Total turnover of the stock transactions on all instruments on the Baku Stock Exchange has amounted to over 9.57 billion manats ($5.63 billion) in January-October 2017, which exceeds the total turnover of transactions in the same period of 2016 by 2.2 times.
During the mentioned period of time, the volume of government securities market totaled 3.8 billion manats ($2.3 billion) (8.4-fold increase over the year), corporate securities market turnover – 1.37 billion manats (4 times growth), and the derivatives market volume –4.4 billion manats (growth by 22.2 percent).